NEW YORK ( TheStreet) -- Cisco (CSCO - Get Report) was one of a number of tech sector gainers in premarket trading Monday, climbing 0.67%% to reach $18.11, as investors digested the networking giant's latest acquisition.
Late on Sunday, Cisco announced a $1.2 billion deal to acquire privately held cloud networking specialist Meraki.
"The acquisition of Meraki enables Cisco to make simple, secure, cloud managed networks available to our global customer base of mid-sized businesses and enterprises," said Rob Soderbery, senior vice president of Cisco's Enterprise Networking Group, in a statement. "Meraki's solution was built from the ground up optimized for cloud, with tremendous scale, and is already in use by thousands of customers to manage hundreds of thousands of devices."
The acquisition, which follows Cisco's $125 million purchase of Cloupia announced last week, is expected to close in Cisco's fiscal second quarter.Cisco's shares gained 6.96% during last week's trading after the San Jose, Calif.-based company reported better-than-expected fiscal first-quarter results. Shares of HP (HPQ - Get Report), which reports its fourth-quarter results after market close on Tuesday, gained 1.09% to reach $12.99 before market open on Monday, despite concerns about the PC environment following rival Dell's (DELL - Get Report) third-quarter miss last week. Dell's top line felt the weight of falling desktop and mobility revenue, much to the chagrin of investors. Shares of the No. 2 PC maker ended Friday down 7.33%, but gained 1.14%% to reach $8.96 before market open on Monday. Apple (AAPL - Get Report) was another winner in premarket trading, rising 1.3% to reach $534.55 on share volume of 109,619, while Facebook (FB - Get Report) rose 1.27% to $23.86 on share volume of 74,164. Sirius XM (SIRI - Get Report) RIM (RIMM) and Yahoo! (YHOO) shares rose 1.12%, 1.96% and $1.06%, respectively, reaching $2.72, $9.38 and $18.05. --Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: firstname.lastname@example.org.